Public Storage (PSA) risk factors, FY2025 10-K

Public Storage's FY2025 10-K, filed Feb 12, 2026, lists 35 risk factors in 3 groups. Against the prior year's 36: 3 new, 4 dropped, 7 substantially reworded.

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Risk factors listed
353 groups
New this year
3vs 36 last year
Dropped
4since the prior 10-K
Substantially reworded
7of those kept
Section length
8k wordsItem 1A

What the changes say

  • Public Storage added risks regarding leadership transitions, AI adoption errors, and REIT tax rules under the Inflation Reduction Act.

What changed since the prior 10-K

New

  • NewRisks Related to Our Properties and Our Business

    malfunctions which could lead to operational challenges and reputational risks

    Using emerging technologies like artificial intelligence could lead to intellectual property, privacy, or regulatory compliance risks and liabilities.

  • NewRisks Related to Our Properties and Our Business

    If we fail to successfully execute our recent leadership succession, we may struggle to effectively execute our strategic plan

    Transitioning to a new Chairman, CEO, and CFO may cause strategic disruptions if leadership succession is unsuccessful.

  • NewRisks Related to Government Regulations and Taxation

    closing of the PSB merger with an unaffiliated third party. We believe we have qualified as a REIT and we intend to continue to maintain our REIT status

    Failure to maintain REIT qualification or changes from the Inflation Reduction Act could result in significant corporate income or alternative minimum taxes.

Dropped

  • DroppedRisks Related to Our Properties and Our Business

    We are subject to risks from the consequences of climate change, including severe weather events and the adverse impact of other steps that may be taken to prevent or mitigate climate change

  • DroppedRisks Related to Our Properties and Our Business

    We have been and may in the future be adversely impacted by emergency regulations adopted in response to significant events, such as natural disasters or public health crises, that could adversely impact our operations

    Climate change weather events damaging facilities.

  • DroppedRisks Related to Our Properties and Our Business

    Ineffective succession planning for our CEO and executive management, as well as for our other key employees, may impact the execution of our strategic plan

  • DroppedRisks Related to Our Properties and Our Business

    Our use of artificial intelligence could expose us to various risks

Reworded

  • 77% rewrittenRisks Related to Our Properties and Our Business

    We may be subject to labor disruptions related to unionization efforts

    Added a new risk concerning potential credit losses from borrowers under the bridge lending financing program.

  • 76% rewrittenRisks Related to Our Properties and Our Business

    Our use of or failure to adopt advancements in information technology, such as artificial intelligence, may hinder or prevent us from achieving strategic objectives or otherwise harm our business

    Added specific language regarding the safe and effective adoption of artificial intelligence and machine learning technologies.

    Was: Our use of or failure to adopt advancements in information technology may hinder or prevent us from achieving strategic objectives or otherwise harm our business

  • 75% rewrittenRisks Related to Government Regulations and Taxation

    We would incur adverse tax consequences if we failed to qualify as a REIT, and we would have to pay substantial U.S. federal corporate income taxes

    Removed the specific reference to the taxable year ended December 31, 2022, regarding the PSB merger.

  • 59% rewrittenRisks Related to Our Properties and Our Business

    Public health and other crises have adversely impacted, and may in the future adversely impact, our business

    Changed references from customers to tenants throughout the public health crises risk.

  • 29% rewrittenRisks Related to Our Properties and Our Business

    Natural disasters, terrorist attacks, civil unrest, or other events that could damage or otherwise disrupt our ability to operate our facilities could adversely impact our business and financial results

    Added drought and extreme temperatures to natural disasters and updated financial statement footnote references to 2025.

  • 25% rewrittenRisks Related to Our Properties and Our Business

    Our development program subjects us to risks

    Removed the specific development pipeline dollar figure of $741.6 million from December 31, 2024.

  • 24% rewrittenRisks Related to Our Properties and Our Business

    We are exposed to ongoing litigation and other legal and regulatory actions, which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business

    Removed the specific employee count of 5,900 and customer count of 2.0 million.

All 35 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Properties and Our Business

  1. 01Natural disasters, terrorist attacks, civil unrest, or other events that could damage or otherwise disrupt our ability to operate our facilities could adversely impact our business and financial results29% rewritten
  2. 02Operating costs, including property taxes, could increase
  3. 03The acquisition of existing properties or self-storage operating companies is subject to risks that may adversely affect our growth and financial results
  4. 04Our development program subjects us to risks25% rewritten
  5. 05There is significant competition among self-storage operators and from other storage alternatives
  6. 06Demand for self-storage facilities may be affected by customer perceptions and factors outside of our control
  7. 07Our newly developed and expanded facilities, and facilities that we manage for third party owners, may negatively impact the revenues of our legacy facilities
  8. 08We may incur significant liabilities from environmental contamination or moisture infiltration
  9. 09Elevated interest rate levels could adversely impact us and our tenants
  10. 10Economic conditions can adversely affect our business, financial condition, and growth
  11. 11We have exposure to European operations through our ownership in Shurgard
  12. 12Public health and other crises have adversely impacted, and may in the future adversely impact, our business59% rewritten
  13. 13Our marketing and pricing strategies may fail to be effective or may be constrained by factors outside of our control
  14. 14We are exposed to ongoing litigation and other legal and regulatory actions, which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business24% rewritten
  15. 15Our use of or failure to adopt advancements in information technology, such as artificial intelligence, may hinder or prevent us from achieving strategic objectives or otherwise harm our business76% rewritten
  16. 16malfunctions which could lead to operational challenges and reputational risksNew
  17. 17The failure or disruption of our computer and communications systems, on which we are heavily dependent, could significantly harm our business
  18. 18If our confidential information is compromised or corrupted, including as a result of a cybersecurity incident, our reputation and business relationships could be damaged and our financial condition and operating results could be adversely affected
  19. 19If we fail to successfully execute our recent leadership succession, we may struggle to effectively execute our strategic planNew
  20. 20We may be harmed if we fail to protect our intellectual property adequately
  21. 21We may be subject to labor disruptions related to unionization efforts77% rewritten

Risks Related to Our Ownership, Organization and Structure

  1. 22Takeover attempts or changes in control could be thwarted, even if beneficial to shareholders
  2. 23Holders of our preferred shares have dividend, liquidation, and other rights that are senior to the rights of the holders of our common shares
  3. 24Holders of our preferred shares are subject to certain risks

Risks Related to Government Regulations and Taxation

  1. 25We would incur adverse tax consequences if we failed to qualify as a REIT, and we would have to pay substantial U.S. federal corporate income taxes75% rewritten
  2. 26closing of the PSB merger with an unaffiliated third party. We believe we have qualified as a REIT and we intend to continue to maintain our REIT statusNew
  3. 27Dividends payable by REITs do not qualify for the preferential tax rates available for some dividends
  4. 28We may pay some taxes, reducing cash available for shareholders
  5. 29If PSA OP were to fail to maintain its status as a partnership for U.S. federal income tax purposes, our financial results would be adversely impacted
  6. 30Changes in tax laws could negatively impact us
  7. 31We have exposure to increased property tax in California
  8. 32We are subject to extensive laws and regulations and to frequent changes in such laws and regulations
  9. 33Our tenant reinsurance business is subject to governmental regulation, which could reduce our profitability or limit our growth
  10. 34In the event that we recognize a significant gain from cash settlement of a forward sale agreement, the U.S. federal income tax treatment of the cash that we receive in such instance is unclear and could impact our ability to meet the REIT qualification requirements
  11. 35International trade disputes, including U.S. trade tariffs and retaliatory tariffs, could adversely impact our business

Other Public Storage 10-Ks

  • FY2024 10-K risk factors
    36 risks

    Public Storage faces high exposure to property tax hikes and climate risks in California. Google dependency for customer acquisition creates distinct marketing vulnerability. Development pipelines and debt costs are pressured by elevated interest rates.

    Filed Feb 24, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.